1.3.4 distribution Flashcards
distribution channel
moves a product through the stages from production to final consumption
intermediary
name given to business involved in the distribution channel
distribution
to make products available in the right place at the right time
multi channel distribution
involves a business using more than one distribution channel
benefits of multi channel distribution
- reach wider target market
- effectively doubling sales
- increase brand awareness
drawbacks of multi channel distribution
- higher costs
- geographically dispersed warehouses
- lots of staff to fufil orders
place
defines both physical location as well as the distribution channel it has travelled through to get from manufacturer –> customer
offline distribution channel
producer – wholesaler – retailer – consumer
online distribution channel
producer – consumer
direct distribution
channel where a producer + consumer deal directly with each other without any intermediaries
indirect distribution
involves the use of intermediaries between producer + consumer
distribution is used due to…
- segementation
- geography
- better use of resources elsewhere
- lack of retailing expertise